Exhibit 99.1
CCBT Financial Companies, Inc. Report
2003 Fourth Quarter and Year-to-Date Earnings
SOUTH YARMOUTH, Mass.--(BUSINESS WIRE)--Jan. 29, 2004--CCBT
Financial Companies, Inc. (NASDAQ: CCBT) Chief Executive Officer and
President Stephen B. Lawson announced fourth quarter 2003 earnings of
$1.2 million, or $.14 per share, as compared to $1.0 million, or $.11
per share, earned in the comparable prior year period. For the year
ended December 31, 2003, the Company reported earnings of $6.4
million, or $0.75 per share, as compared to $14.4 million, or $1.68
per share in 2002.
Mr. Lawson commented, "In 2003, the Company continued its focus on
increasing non-bank fee-based revenues. Investment services, brokerage
and insurance fees, respectively, increased $789,000 or 11.6%,
$296,000 or 19.8% and $242,000 or 9.5% in 2003. However, the historic
lows in interest rates as well as several significant events this year
negatively affected our 2003 fourth quarter and twelve-month earnings.
The lows in interest rates and mortgage rates, in particular,
significantly accelerated pre-payments on both residential mortgage
loans and investment securities backed by housing collateral,
resulting in reinvestment of principal proceeds at much lower rates.
This accelerated the write-off of deferred costs and mortgage
servicing rights on residential mortgage loans and hastened the
amortization of premiums paid on mortgage related investment
securities. Net interest income reported for both the quarter and year
have decreased due to the combination of earning asset yields having
declined faster than our ability to lower funding costs, the
accelerated write-down of residential mortgage deferred costs and
mortgage servicing rights, and the accelerated amortization of
premiums on investment securities. During the year, we opened
financial centers in Mashpee Commons and Pine Hills, closed nine
transaction locations in Stop & Shop supermarkets and extended the
hours of operation in our full service financial offices. Our
twelve-month earnings results reflect the impact of these factors and
events, as well as the settlement of the real estate investment trust
(REIT) tax issue with the Massachusetts Department of Revenue and
losses from the impairment and sale of investment securities. The REIT
settlement caused us to recognize an increase in income tax and
related interest expense, net of tax benefits, of $2.5 million in 2003
while losses from the impairment and sale of investment securities
were $1.7 million in 2003 as compared with a gain in 2002 of $2.1
million. The return on average equity and assets for the fourth
quarter of 2003 were 4.14% and 0.35% compared to 3.20% and 0.25%,
respectively for the same quarter in 2002. The return on average
equity and assets for 2003 were 5.64% and 0.48% compared to 12.24% and
0.99%, respectively, for 2002."
Total assets were $1.3 billion at December 31, 2003 as compared
with $1.5 billion at December 31, 2002. Year over year deposit growth
of $62.9 million was offset by the $189.8 million reduction in total
borrowings. The decrease in sources of funds was primarily reflected
in the $97 million decrease in investment securities and with total
gross loans down $7.8 million to $793.6 million from $801.4 million
reported one year ago. Solid growth in both commercial mortgages and
home equity loans were offset by the decrease in residential
mortgages. Total non-performing assets were $4.1 million and $2.8
million at December 31, 2003 and 2002, respectively. The allowance for
loan losses was $12.7 million on December 31, 2003, up modestly from
$12.4 million a year ago. Capital at December 31, 2003 and 2002 were
$114.4 million and $118.4 million with capital to assets ratios of
8.6% and 8.0%, respectively.
CCBT Financial Companies, Inc. announced on December 9, 2003 that
it had reached a definitive agreement to be acquired by Banknorth
Group, Inc. (NYSE: BNK) in an all-stock transaction valued at
approximately $300 million. Banknorth Group's banking subsidiary,
Banknorth, N.A., currently operates 114 branches in Massachusetts and
has recently announced the acquisition of Foxborough Savings Bank and
First & Ocean Bancorp. Pro forma, the three acquisitions will increase
Banknorth's total branches in Massachusetts by 35 to 149. Banknorth
has been an innovator in bringing its customers insurance and
investment services to complement a full range of banking services.
Through this transaction, we expect to enhance the commercial and
consumer lending expertise available to current and prospective
customers. The Company also recently declared a $0.19 quarterly
dividend to be paid January 30, 2004 to stockholders of record January
20, 2004.
CCBT Financial Companies, Inc. is a bank holding company with
total assets of $1.3 billion on December 31, 2003. Its subsidiary,
Cape Cod Bank and Trust Company, N.A., owns CCBT Brokerage Direct and
a 51% interest in Murray & MacDonald Insurance Services, Inc. The
Company offers a wide range of financial products and services
including deposit services, loans, municipal services, insurance,
trust, investments and retirement services to individuals,
municipalities and businesses. To find out more about CCBT Financial
Companies, Inc. and our services, please visit our web site at
www.ccbt.com or stop in for a visit at one of our twenty-seven branch
locations.
This report may contain statements that are not historical facts
and are considered forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements
relate to, among other things, future financial results of the
Company. You should not rely on forward-looking statements because the
Company's actual results may differ materially from those indicated by
these forward-looking statements as a result of a number of important
factors. These factors include, but are not limited to, delays in
completing the merger with Banknorth, difficulties in integrating the
Company with Banknorth, changes in prevailing interest rates and
increases in mortgage prepayments which may reduce interest margin,
changes in national and local economic conditions and equity and fixed
income market fluctuations. Reference is made to the Company's filings
on Forms 10-K with the Securities and Exchange Commission for factors
that could cause actual results to differ materially from those
anticipated.
Our Form 10-K filing with the SEC and available on our web site
will contain more detailed financial information.
ASSETS ($000) 12/31/03 12/31/02
Cash & cash equivalents 63,724 60,798
Securities available for sale 359,592 510,837
Securities held to maturity 54,167 0
Other securities 24,738 24,738
Construction loans 87,431 99,544
Commercial mortgages 316,317 283,458
Commercial loans 86,608 84,882
Residential mortgages 211,546 262,095
Home equity loans 87,098 65,794
Other consumer loans 4,611 5,629
Total portfolio loans 793,611 801,402
Loans held for sale 7,306 37,332
Loan loss reserve (12,713) (12,384)
Goodwill 803 803
Other intangibles 4,433 5,511
Total intangible assets 5,236 6,314
Mortgage servicing rights 2,780 2,088
Real estate owned 1,500 1,500
Other assets 38,292 49,258
Total assets 1,338,233 1,481,883
LIABILITIES ($000)
Savings/NOW accounts 281,977 259,587
Money market deposits 302,962 294,295
Other consumer time 112,390 121,961
Time deposits over $100,000 56,459 37,344
Short-term borrowings 69,533 227,091
Long-term borrowings 138,482 170,750
Total interest-bearing liab. 961,803 1,111,028
Demand deposits 251,313 229,033
Minority interest 282 234
Other liabilities 10,358 23,141
Total liabilities 1,223,756 1,363,436
EQUITY ($000)
Common equity 114,477 118,447
Net unrealized loss
on AFS securities (907) (1,018)
Book value per share 13.60 13.79
Common shares issued 9,061,064 9,061,064
Treasury shares (640,866) (470,266)
Common shares outstanding 8,420,198 8,590,798
Fourth Fourth
Quarter Quarter
INCOME STATEMENT ($000) 03 02 YTD 03 YTD 02
Interest income 14,197 18,700 59,212 77,237
Interest expense 4,079 8,419 17,798 29,118
Net interest income 10,118 10,281 41,414 48,119
Net interest income (FTE) 10,183 10,363 41,708 48,468
Loan loss provision 0 0 0 0
(Loss) gain on securities 0 (1,104) (1,692) 2,074
Financial advisor fees 1,772 1,665 7,596 6,807
Service charge on deposits 553 531 2,358 2,210
Gain on sale of loans 108 293 3,180 1,941
Other noninterest income 2,429 2,247 10,039 9,917
Total noninterest income 4,862 3,632 21,481 22,949
Employee salaries and benefits 7,397 6,661 26,195 27,074
Occupancy and equipment 1,460 1,630 6,048 6,289
Foreclosed property expense 199 17 253 78
Amortization of intangibles 306 332 1,225 1,225
Deposit insurance expense 41 39 165 162
Other noninterest expense 3,770 3,595 14,693 14,117
Total noninterest expense 13,173 12,274 48,579 48,945
Net income before taxes 1,807 1,639 14,316 22,123
Tax provision 632 687 7,939 7,683
Net income 1,175 952 6,377 14,440
Basic EPS 0.14 0.11 0.75 1.68
Diluted EPS 0.14 0.11 0.75 1.67
Dividends per common share 0.19 0.19 0.76 0.76
Avg shares for basic EPS 8,420 8,590 8,463 8,613
Avg shares for diluted EPS 8,463 8,623 8,488 8,649
Fourth Fourth
Quarter Quarter
AVE. BALANCE SHEET ($000) 03 02 YTD 03 YTD 02
Taxable securities 445,144 579,087 447,757 488,386
Tax-exempt securities 18,622 17,971 21,353 18,252
Total portfolio loans 782,741 845,842 777,220 873,417
Loans held for sale 8,244 19,431 12,998 8,758
Other earning assets 0 0 0 0
Total earning assets 1,254,751 1,462,331 1,259,328 1,388,813
Total assets 1,331,556 1,538,600 1,336,603 1,459,477
Savings/NOW accounts 280,126 257,382 272,678 239,120
Money market deposits 324,297 310,177 303,332 289,682
Other consumer time 112,317 124,029 116,445 133,821
Time deposits over $100,000 41,437 37,845 39,539 41,642
Total interest-bearing
deposits 758,177 729,433 731,994 704,265
Short-term borrowings 57,914 298,537 106,500 249,827
Long-term borrowings 139,861 145,217 132,215 152,666
Total interest-bearing liab. 955,952 1,173,187 970,709 1,106,758
Demand deposits 254,946 231,417 242,185 222,183
Minority interest 294 (76) 277 234
Other liabilities 7,741 16,007 10,392 12,355
Total liabilities 1,218,933 1,420,535 1,223,563 1,341,530
Common equity 112,623 118,065 113,040 117,947
Return on average assets 0.35% 0.25% 0.48% 0.99%
Return on average equity 4.14% 3.20% 5.64% 12.24%
Fourth Fourth
Quarter Quarter
CHARGEOFFS ($000) 03 02 YTD 03 YTD 02
Loan chargeoffs (90) (89) (146) (226)
Recoveries 32 51 475 358
Net loan charge-
offs(recoveries) 58 38 (329) (132)
ASSET QUALITY ($000) 12/31/03 12/31/02
Nonaccrual loans 2,550 1,348
Renegotiated loans 194 210
Other real estate owned 1,500 1,500
Total nonperforming assets 4,050 2,848
SUPPLEMENTAL DATA 12/31/03 12/31/02
Loans serviced f/others ($000) 419,386 322,085
FTE employees 394 402
Number of full service offices 27 34
Number of subsidiaries 2 2
Number of ATM's 35 42
CONTACT: CCBT Financial Companies, Inc.
Phillip W. Wong, 508-760-8306